Calculate the rate of return on a price-weighted index of


Consider the three stocks in the following table. Pt represents price at time t, and Qt represents shares outstanding at time t.

P0 Q0 P1 Q1

A 90 300 100 300

B 50 200 40 200

C 100 200 112 200

a. Calculate the rate of return on a price-weighted index of the three stocks for the period t=0 to t=1.

b. Calculate the rate of return on a market value-weighted index of the three stocks for the period t=0 to t=1.

Request for Solution File

Ask an Expert for Answer!!
Financial Management: Calculate the rate of return on a price-weighted index of
Reference No:- TGS02674106

Expected delivery within 24 Hours